S&P rates Hill-Rom notes BB

S&P said it assigned a BB rating to Hill-Rom Holdings Inc.'s $300 million proposed senior unsecured notes.

The recovery rating on this debt is 5, indicating 10% to 30% expected default recovery.

The proceeds will be used to help fund the planned $330 million acquisition of Mortara Instruments Inc., S&P said.

The BB+ corporate credit rating on Hill-Rom is unchanged, the agency said, and the outlook is stable.

Hill-Rom's business risk is predicated on its well-established position as a provider of medical technologies and related services for the health care industry, including hospital beds, safe mobility and handling solutions, medical equipment rentals, surgical products and IT solutions, the agency said.

The company also benefits from increasing breadth and brand awareness as a result of recent acquisitions within vital signs and patient monitoring technologies and operating-room devices, S&P said.

The company has strong brand loyalty with hospital beds and uses this to expand its presence further into diagnostics, the agency said.

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